Ponzi- A Darker side of Investment Business

You must have heard of the term .onzi?or the term .cam?both do not sound as harmful as they are. The reality is that they have been the cause of many heart attacks all over the world. Basically any business that offers its investors a very high rate of return is probably a ponzi or a scam.
What is Ponzi?

 Ponzi is basically a business in which there is actually no investment by the company owner and it is based on a promise of a very high return. The company basically keeps passing the money of new investors on to the older ones as a profit return and in return they get them to get more clients. The happy client becomes an agent and by word of mouth gets more and more clients to invest in the company. The business keeps rolling till the company owner either reaches his set target, or sees that the number of newer clients can no longer support the older clients. This is the point where they make their exit with your hard earned money.
How To Identify Pionzi?

They can be in a rented office just across the street or on the internet. It is very difficult to judge because these are basically con artists who are very cunning and can easily find your weakness and then exploit it. here are a few ways to identify a Ponzi scammer at work:
?The company will be new in the business and will try to show that they are very stable or even claim to be a subsidy of a very well known business now operating for your benefit.
?They will offer you unbelievably high rate of return on your investment.
?They will usually approach senior citizens who are more worried about their rapidly shrinking savings due to deflation.
?They will hold seminars and invite everyone to attend.
If you are being approached or you know someone being approached by someone with an unbelievable offer, the best is that don. believe it.